What to expect from the Terra Luna Classic (LUNC) airdrop?

Highlights

• On 27 May, Terra Classic and its native token Luna and Terra Luna Classic with the new ticker LUNC went live with several exchanges showcasing their support.
• Exchanges, such as Binance, Bitfinex, Kraken, FTX, etc., have shown their support by renaming the crypto token and supporting the much-awaited LUNC crypto's airdrop.
• On 27 May, the LUNC crypto was trading at US$0.00012977 with a trading volume of US$135,968,284 over a day, according to CoinGecko.

The Terra 2.0 is almost here. As the vote was in favour of the Terra 2.0 reboot on 25 May, there were many action-packed moments the following day. On 27 May, as Terra Classic and its native token Luna and Terra Luna Classic with the new ticker LUNC went live, several exchanges have showcased their support. 

Perhaps the biggest in terms of transaction volume, Binance was the leading one to support its reboot. Previously, it had suggested renaming the Terra tokens. It also supported the airdrop on its platform.

Other exchanges, such as Bitfinex, Kraken, FTX, etc. too joined the bandwagon and supported the LUNC crypto's airdrop. 

Also read: Will Terra 2.0 bring the investors back onto its platform? 

Eligibility for the airdrop

According to the LUNA ecosystem's announcement, upon its genesis, the eligible holders of LUNC, USTC, and aUST will be airdropped on the new chain. 

A large part of the breakdown, i.e., 30% will go into a community pool, and the "pre-attack" LUNA holders will get 35%. Besides, post-attack LUNA holders will be eligible to get 10%, and post-attack UST holders will get 15%. 

What to expect now? 

The airdrop seems to be another step towards winning back the community's confidence. So, billions of new Luna tokens will increase the Terra 2 chain’s total supply by 12%.

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This sits well with founder Do Kwon's plans to win back the Terra community, who have been backing them despite the TerraUSD stablecoin collapse earlier this month.

Besides, he emphasised that the UST would remain the central narrative of Terra's growth and aims to rebuild the chain with validators focussing on resetting the network back to one billion tokens.  

How is the market faring? 

But the so-called LUNC crypto seems to haven't got off to a flying start. It did show signs of a significant rally but soon fell sideways. At the time of writing, it's trailing by 24.37% and a volume loss of 72.68% on 27 May, according to CoinMarketCap. 

The LUNC dropping is surprising, considering the market was looking forward to this restart of the LUNA token on Friday. But the RSI is as low as 14.41 during the intra-day trading session, indicating that the market participants are still in the selling phase and are gripped by extreme fear. 

Image Credit: Trading View 

But several of the investors are hoping that post the airdrop the token will pick up the pace, with several Twitteratis suggesting it will hit back US$1 mark soon. The MACD line is slightly above the signal line, but it's essentially the result of the recent rally on 26 May. 

Related read: How Terra's (LUNA) US$30 bn crash is benefitting this crypto

On 27 May, the LUNC crypto was trading at US$0.00012977 with a trading volume of US$135,968,284 over a day, according to CoinGecko. The LUNC crypto was enjoying a live market cap of US$81,49,58,048 with 65,36,39,69,03,498 LUNA coins.

Many market participants were hoping for an upswing. Still, contrary to their beliefs, the Terra tokens have taken a beating, and it will be interesting to see whether the airdrop can revive the interest. 

But this also shows the volatility of the crypto market and how the market has changed over the past 24 hours. Hence, the market participants need to be extremely careful before taking any investment decisions. 

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